Hypothetical Trading System Signals on July 18, 2022

We continue to sit on the sidelines and watch the market act unnaturally in its day trade patterns.

The VIX gapped up today and the market gapped up today. I thought we might see an end of day VIX Divergence, but the market rolled over into the close.

There were 11 Nasdaq strategies that traded today, 8 were losers and the 3 that were winners, almost brought the portfolio back to breakeven with three really nice shorts on the day. It was great to see the market get shaken up a little bit. Bear market rallies are supposed to be fast and furious with more follow through. Since July 4th, this market acts like it is in low volatility bull market mode. That's typically a mode we see when the market is closer to all time highs.

As we enter earnings season, it will be interesting to see if the market tries to call a bottom and move higher or if we will rollover to new lows - which we haven't seen in over a month.